Bummer: Ford Loses $1.3 Billion In First Quarter On EVs

Ford violated one of the main rules of any company that sells products to consumers: listen to what the consumer wants. The number who wanted EVs was low. And do not sell at an overall loss

Ford Loses $1.3 Billion on Electric Vehicles in First Quarter of 2024, Delays Plans to Make More

Ford Motor Company reported a whopping $132,000 loss on each electric vehicle (EV) sold during the first three months of 2024, amassing a $1.3 billion loss.

The auto manufacturer’s electric vehicle unit revealed Thursday that they experienced a 20 percent decrease in sales volume and were forced to slash prices due to low consumer demand, CNN reported.

The revenue for Ford’s EV car, the Model e, plunged by 84 percent to about $100 million, which the company blamed on EV price cuts across the auto industry.

“That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit,” the publication noted.?

The recent figures are part of a trend of loss for Ford, with their Model e reporting a full-year EBIT loss of $4.7 billion on the sale of 116,000 units. This is an average loss of $40,525 per vehicle — and even that is just a third of the per-vehicle loss seen in the first three months of 2024.

Now, company officials are estimating that their EV division will lose a grand total of $5 billion this year, up from $4.7 billion last year.

There’s nothing wrong with Ford making EVs: there is a demand for them, even if small. But, they moved too far too fast, far exceeding demand, leaving them with lots and lots of inventory that couldn’t be moved. And leaving dealers with expensive burdens on their lots, which they were forced to purchase from Ford.

“Americans don’t want EVs at levels Biden’s climate hysteria require,” author and businessman Andy Puzder wrote on X. “Ford’s EV Q1 losses soared to $1.3 billion — a ridiculous $132,000 per EV sold. All Ford’s profits came from combustion engine vehicle sales. Collectivist policies destroy prosperity.”

Well, yeah. After the initial interest in the “Mustang” that died down, and many sold them off and get a gas vehicle, either straight petrol or hybrid. And, quite frankly, it’s often difficult to get people into a hybrid. Heck, it’s still sometimes the money. When my lease is up next April the Civic hybrid will be here. I’ll look at the lease values of it and the straight petrol versions. I drive less than 10K a year, so, unless the hybrid lease price makes sense I’ll just stay with the regular.

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